Mike Novogratz, CEO of Galaxy Digital, stated in an interview with Bloomberg TV that Bitcoin could experience a pullback before continuing its upward trend to higher levels. Novogratz added that a correction could potentially cause Bitcoin to drop to the $55,000 level before rallying to new highs.
This week, Bitcoin’s price surged 20%, surpassing the $60,000 milestone. This can be attributed to the approval of a Bitcoin futures ETF in the United States, which not only attracted significant inflows of new capital but also propelled Bitcoin into a phase of “price discovery.”
However, Novogratz also cautioned that this could lead to market frothiness, with some investors engaging in unsustainable high-leverage trading. Many FOMO (Fear of Missing Out) traders, especially those from the Y and Z generations, may incur losses as a result.
Nevertheless, in the long run, a Bitcoin futures ETF could trigger a wealth transfer among the baby boomer generation and drive a significant increase in Bitcoin’s price. Novogratz stated that the baby boomer generation holds approximately $85 trillion in wealth, while Bitcoin’s total market capitalization is slightly above $1.2 trillion. If they were to allocate just 1% to 3% of their investments into Bitcoin, it would have a significant impact on its price, potentially surpassing its 2021 peak of around $69,000.
